To enhance women’s representation and leadership in digital health, various policies can be adopted across government, organizational, and industry levels. CNBC Africa's Tabitha Muthoni is joined by Immanuel Momanyi, Hub Director at HealthTech Hub Africa.
To enhance women’s representation and leadership in digital health, various policies can be adopted across government, organizational, and industry levels. We were joined by Immanuel Momanyi, Hub Director at HealthTech Hub Africa. For more, let's begin with the numbers. In 2022, the big data released a report that showed that out of all investment that was raised in Africa, only 4% was raised by women-led startups. And so, basically, men raised 25 times more what ladies raised, right? Startups led by women. And in 2023, that number grew. I mean, there was an improvement. It was about 7% that was raised by female-led companies compared to their male counterparts, who raised about 13 times more. But that shows you the disparity that we have. If you go back to 2022, we had the Africa tech startups that released a report that talked about, you know, some of the companies that were successful in raising funds. And they showed that 52% of those that raised had gone through some form of acceleration or incubation. There is a reason why I'm sort of using those examples to drive the point at home. Here is the thing. It's really, really difficult to walk the healthcare journey alone. And investors need some form of confidence before they can actually put money into any business. And incubation and acceleration has really played a big role in trying to help these startups raise funding. And sadly, we've seen that a lot of women shy away from these opportunities, right? It means that if they accessed incubation or acceleration opportunities, they would then be equipped to be in a better place to actually go out and compete with their male counterparts. Previously, there have been a lot of programs that actually put out calls for women entrepreneurs to apply, or calls that were targeting women but were open to men as well. And we saw more men apply than women applying. And that tells you there's also an issue of either women shying away from these opportunities that then kind of doesn't necessarily offer the solution to them. But it also means that we intentionally, for us that are actually in this entrepreneur support organization space, we need to intentionally then put together measures to equip the ladies and really empower them to go out there and raise funding. Not necessarily just raising funding, but running successful businesses. And I think investors as well, they need to intentionally put together measures that then improve or that are geared towards supporting women. Otherwise, if we don't, as you can see, they shy away from it, and we need to go out there and just make it really comfortable for them to actually access those opportunities. Yes, I do think empowerment is critical here, Emmanuel. But I'm so keen on how government and even maybe private sectors or investors can play a role here when it comes to helping these women take or lead innovations. And also maybe the kind of impact you're going to see in terms of the broader economy. So from your interactions, how do you feel the government and private investors can work together, collaborate? You know, it's funny you ask that question, because at the Healthcare Club Africa, what we're trying to do is bring government, investors and startups together. And one of the biggest challenges in the healthcare space is all these startups are operating in an environment where maybe there are no policies that are actually regulating those innovations in the healthcare space. It will interest you to know that healthcare is the most regulated sector. And so some jurisdictions are actually working with very old policies that are not necessarily geared towards supporting startups as it is. And so what we're doing is supporting what also needs to be done by other people is working with governments to help them then develop policies that would create an enabling environment for startups to flourish. And this includes women startups, right, or women-led startups, but also working with bringing all the other stakeholders on board. It is important for startups and governments to talk because governments need to understand what startups are actually innovating on, but also startups need to understand that they need to innovate startups that actually are in solutions that align with government priorities. But also other stakeholders like investors need to be there. I mean, it doesn't make sense if a government develops policies and they do not understand the effect it has on some players like investors. Only an investor understands what the effect of a certain policy would be on the investment. So having all of them working together would then enable government to create policies that support innovation so they can actually uptake innovation, but then investors can also invest in startups because they are confident because the policy environment is actually enabling those innovations. Yes, so Emmanuel, what I am saying here is that it's an ecosystem. We have the government, we have the private investors, we have the people who are coming up with solutions, who require the private investors, and we do need the government to come up with friendly policies. But we keep talking about policies, Emmanuel. So do we have the right policies? Do we have any world policies that maybe we can borrow? Does Africa have its own policies? You have mentioned we have old policies. What are these policies and how can you make them better, more advanced, to ensure that they are at par with how the world is evolving, not as well how technology is evolving at the same time? Yes, you know, it's funny, but we do not necessarily actually have policies that are targeted towards improving the representation of women in digital health. But of course, if you just take a step back and look at different governments, we've seen efforts by, say, for example, in Kenya, you have the two-third gender rule, where any decision-making organization should not have one gender, I mean, represented by more than two-thirds of that. In Rwanda, you have like, you know, government trying to have at least 30% of women represented in any decision-making organ. And that in itself, it's actually what actually happens across the world. A lot of innovations, especially digital health solutions, benefit women. So imagine if you're developing policies and you do not have a woman represented in that organ that is making those policies. And so it means that you need to have women represented in those decision-making organs, so that we are then creating policies that would govern these solutions that affect women. I mean, we also have startups that are developing solutions, and you'll find that some startups are actually just men, and they're creating a solution for women. I mean, only a woman would understand a woman better, right? Exactly. And so that's why you also need to have a woman as part of the team that is developing that solution. Similarly, you need to have women in those decision-making organs, so that we create policies that are capturing views of different players or different entities that are actually affected by those. Yes, you've mentioned Kenya to that general rule, but we're here in Rwanda, and I can tell you that Rwanda has hit the nail on the head when it comes to equal opportunities for both men and women. But looking at it, yeah, looking at it wholesomely in terms of maybe the intersection of digital health and also gender equity, economic growth evolving in the next years of companies, particularly in regions with historically low women's representation in tech, what are we likely to see? Let us circle back and see what are we talking about when it comes to women-led innovations or women health tech innovations. Where are we and what's the way forward? Just briefly. I would say while we are, maybe we might have pointed it like a really big gap, the truth is the situation is improving with time. It might take time, but we'll get to a situation where the women-led startups would actually be competing favourably with men. It will also interest you to know that in some jurisdictions actually across the continent, we've seen very successful women entrepreneurs. Like for example, in Kenya, we have a startup called Benakia that recently launched a mobile dialysis. It's actually perhaps the only mobile dialysis we know in the region, right? That is a women-led enterprise. So while a lot of women-led enterprises need time and need a lot of support to improve, that is going to change. Policy-wise, a lot of governments, you've mentioned the case of Rwanda, and Rwanda is a really good example of a government that is actually willing to uptake innovation. But the funny thing is, it has a ripple effect on the rest of the continent, because governments are now willing to actually come on board to support and create policies that would support women as well.
Theme: Promoting Women's Leadership and Innovation in Digital Health
In the fast-evolving landscape of digital health innovations, the need for women's representation and leadership is more crucial than ever. According to a recent report by Big Data in 2022, only 4% of investments in Africa were raised by women-led startups. This stark contrast highlights the disparities in funding between male and female entrepreneurs. However, by 2023, there was a promising increase to 7% in funding raised by female-led companies, showcasing a positive trend in the right direction. Despite these improvements, the road to success remains challenging for many women entrepreneurs. Incubation and acceleration programs have proven to be instrumental in helping startups secure funding and build confidence among investors. Unfortunately, many women still shy away from these opportunities, hindering their ability to compete effectively with their male counterparts. To address this issue, it is essential for organizations and investors to create targeted measures and support systems to empower women in the entrepreneurial space. One key aspect emphasized by Immanuel Momanyi, Hub Director at HealthTech Hub Africa, is the importance of intentional efforts in equipping and empowering women to succeed in raising funds and running successful businesses. By creating a conducive environment and offering tailored support, women-led startups can thrive in the competitive digital health sector. Collaboration between government, private investors, and startups is essential in shaping a supportive ecosystem for women's innovations in digital health. Momanyi stresses the significance of developing policies that enable startups to flourish, especially in the highly regulated healthcare sector. By working closely with governments to revamp outdated policies and align regulations with current innovation trends, startups, including women-led enterprises, can benefit from a conducive policy environment. Governments play a vital role in understanding and supporting the needs of startups, while investors bring valuable insights on the impact of policies on investment decisions. The synergy between these stakeholders is crucial in fostering innovation and driving economic growth in the digital health sector. While Africa may not have specific policies targeting women's representation in digital health, examples from countries like Kenya and Rwanda demonstrate efforts to promote gender equity in decision-making bodies. By ensuring women are involved in policy-making processes and innovation development, governments can create inclusive policies that cater to diverse needs and perspectives. Looking ahead, the future of women-led innovations in digital health holds tremendous potential for growth and impact. Successful women entrepreneurs like the founders of Benakia in Kenya, who launched a groundbreaking mobile dialysis service, are paving the way for other women-led startups to thrive in the industry. With continued support from governments, investors, and the broader ecosystem, women entrepreneurs in digital health are poised to compete on a level playing field and drive meaningful change in healthcare innovation.
"By creating a conducive environment and offering tailored support, women-led startups can thrive in the competitive digital health sector."
Digital Health, Women Entrepreneurs, Startups, Investments, Policies, Innovation, Africa, Healthcare, Gender Equity